Which of the following is true? S corporations held 100% by one individual shareholder do not report income and deductions separately, all corporation income is reported directly on the shareholder's individual retum. To be eligible for S corporation treatment, a corporation or other entity must be formed in accordance with state law. An S corporation is subject to estimated tax penalties only if their total tax due at the end of the year exceeds $1,000. Taxes are paid on profits by shareholders in the year they are distributed to the shareholders. Mark for follow up